global economics case studies

Question 1

how did US steel tarriffs affect the economy?

Answer 1

• benifited us steel producers
• increased costs of production for firms that rely on the steel
• estimated loss of 146,000 jobs

Question 2

what is the chinese yuan managed at? in 2015 by how much did china reduce their currency?

Answer 2

1 yuan= 0.14 dollars
- in 2015 china reduced their currency against the dollar by almost 4%

Question 3

how long has the US china trade war been going on for? what is the estimated impact on global GDP?

Answer 3

• since 2018

Question 4

how did china respond to US tarriffs?

Answer 4

• china imposed a 25% tarriff on goods such as aluminium and air planes

Question 5

how many electric viechles did china sell between 2009 and 2022?

Answer 5

• 6 million
• half of global sales

Question 6

how much was spent by the chinese government on tax breaks and subsidies for electric viechles?

Answer 6

• between 2009 and 2022
• the government spent $28 billion on subsidies and tax breaks to the electric viechle industry

Question 7

what was the estmated trade diversion effect of the EU?

Answer 7

• 5%

Question 8

by how much was is estmated that eu trade increased between eu members as a result of the eu?

Answer 8

• increased by 40%

Question 9

how much more likely are imingrants to set up businesses than american citizens?

Answer 9

80% more likley

Question 10

what is the netherlands immigration incentive?

Answer 10

• immigrant workers recieve 30% of their income tax for up to 5 years

Question 11

What is an example of a country that struggled to recover from recession due to its currency being tied to another?

Answer 11

Argentina arguably had a deeper recession than other Latin American countries due to their currency being tied to the dollar.
This meant that their currency rose in line with the dollar, rather than adjusting in response to the shock.

Question 12

give some examples of recent trade agreement made by the eu.

Answer 12

• new zealand
• negociations with china over liberalising investment between countries
• negociations with india over creating free trade between the countries

Question 13

give an example of a country who saw a change in their comparitive advantage.

Answer 13

north korea
- they previosly had an advantage in agriculture and textiles however after industrialisation and mass investment into techology they have a comparitive advantage in technology
e.g samsung, LG and hyundai

Question 14

what has been the chinese growth rate since opening up its economy?

Answer 14

• since opening up in 1979 the chinese growth rate has been 9%

Question 15

what was the recent protectionism introduced by the UK government?

Answer 15

• the common user charge
• apply to small imports of animal products and plants
• fees up to £145 will pay for “boarder protections and improved biosecurity”
• firms have said it will lead to large cost and price rises

Question 16

how much does the US government recieve in tarrif revenue each year?

Answer 16

$74 billion

Question 17

which countries joined the WTO relitively recently?

Answer 17

• china 2001
• russia in 2012

Question 18

what % of international trade is believed to be created by TNC’s?

Answer 18

in 2014- MNC’s accounted for around half of global trade

Question 19

what are the eurozones fiscal rules?

Answer 19

• budget deficit less than 3% of GDP
• national debt less than 60% of GDP

Question 20

what was the recent tariff imposed by the US on china?

Answer 20

• 100% tariff on chinese electric viechles
• increased steel and aluminium tariffs to 25%
• increase tariff on semi conductors from 25% to 50%

Question 21

how much is biden investing into the semi conductors industry?

Answer 21

$53 billion